The Market started the week in the Green, overcoming an after open “schoopla” (as Lavender would call it), and rallying the rest of the afternoon. There were some nice moves and trades in GOOG, PCLN, CAT and others. NFLX reported after the bell and beat estimates as well as the outlook for the next Q. The stock rallied 24% on the beat and is currently $216 PM. As i listed in the watchlist yesterday, as well as through my private twitter and the chatroom, I grabbed the May $250 calls along with the June 265 and $285 calls. With a huge move priced in, the weekly calls did not provide as much risk vs reward as the further months did. Normally i would look to lock some in at the open, but i have time on my calls, so may wait a day or two. Looking forward, I think the stock is on a crash course with $300+ and may look for $250+ in the coming week or two. Here is what I said about NFLX in the week ahead webinar Sunday night as well, for those that missed it: https://vimeo.com/64602258
I also grabbed some AAPL 465 weekly calls along with some May 495 calls. I always tells folks I am not an AAPL expert, but I think the stock is at an inflection point, and will break hard either way on the earnings report tonight. As you all know, I am still a bull so I am call biased here.
I purchased BPT May 85 calls @ .30 yesterday, as the action leads me to believe it is going higher, even though Sunday night i removed it from my ‘Stocks I like” list. Think that stock can move to $86 in the coming days: https://www.optionmillionaires.com/2013/text-trade-idea-for-today-inside-gold-and-above/
I also like WYNN for a $130 break this week and bought the $135 Weeklies @ .17 : https://www.optionmillionaires.com/2013/wynn-resorts-wynn/
PNRA and AWAY report after hours as well. Considering PNRA has moved up substantially over the past few weeks, I will probably pass on the calls, although I think this is the report that may send the shares over $200 once and for all.
I will be playing AWAY with some Lotto $40 calls for .15/.20 (if i cant get .15 for a few hours I will hit the .20). Stock is still in the early stages of being valued based on only a few earnings reports, so could see some serious upside on a beat and decent outlook.
AMZN reports this week and will try to get some calls for premium build.
Here are the analyst changes for today:
NFLX Netflix price target raised to $230 from $180 at Cantor
Cantor increased its price target on Netflix after the company reported stronger than expected results. The firm believes that the company's leverage is improving and it keeps a Buy rating on the shares.
NFLX Netflix strong sub additions reflected in shares, says Piper Jaffray
Piper Jaffray believes Netflix's strong subscriber additions are priced into shares at current levels and keeps a Neutral rating on the stock following the company's Q1 results. Piper sees potential price increases as the largest swing factor for earnings over the next two years, and points out that Netflix says it has no plans for a price increase at this point. The firm raised its price target for Netflix shares to $194 from $170.
Netflix (NFLX) Higher Multiple Can Be Sustained; PT Raised to $250 - Janney : http://www.streetinsider.com/Analyst+Comments/Netflix+%28NFLX%29+Higher+Multiple+Can+Be+Sustained%3B+PT+Raised+to+%24250+-+Janney/8269771.html?si_client=st
NFLX Netflix price target raised to $254 from $205 at JPMorgan
JPMorgan says Netflix is back on track following its second straight quarter of strong results. The firm raised its price target for shares to $254 following the company's Q1 results and reiterates an Overweight rating on the stock.
NFLX Netflix price target raised to $250 from $200 at Lazard Capital
Lazard Capital raised its price target by $50 to $250 for Netflix shares following the company's Q1 results and keeps a Buy rating on the stock.
Netflix target up to $224 from $107: Susquehanna
NFLX Netflix price target raised to $235 from $200 at Morgan Stanley
Shares are Overweight rated.
BAC Bank of America upgraded to Overweight from Equal Weight at Morgan Stanley
YUM Yum! Brands downgraded to Underperform from Buy at BofA/Merrill
MS Morgan Stanley upgraded to Buy from Neutral at SunTrust
SunTrust upgraded Morgan Stanley based on progress in its restructuring efforts, a sustained earnings run-rate, and attractive risk/reward. Price target raised to $25 from $24.
CAT Caterpillar upgraded to Overweight from Neutral at JPMorgan
ILMN Illumina price target raised to $72 from $59 at Credit Suisse
Credit Suisse said Illumina's Q1 was "impressive" and sees significantly more upside following the strong quarter. The firm reiterates its Outperform rating and raised its price target to $72 from $59.
Only looking to get a few positions today:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price | Entry Price |
AMZN | CALL | $310.00 | Weekly | 0.31 | 0.25 |
AMZN | CALL | $320.00 | May | 0.28 | 0.28 |
AWAY | CALL | $40.00 | May | 0.20 | .15 or .20 |
Lets have a great trading session!
- JB